From the time period of 1870 to 1900 the growth of big businesses in the United States had a major impact on the economy, politics, and the response of Americans of Americans to these changes. These businesses grew significantly in number, size, and influence and had an ever-lasting effect on Americans and their surrounding community. Industry and its new technologies have had an amazing impact on reducing the costs of the goods necessary to life, such as food prices, fuel and lighting prices, and the cost of living (Document A). The standard of living of most Americans should have increased, as more wages would be left over to spend on luxuries. Aware of the extra-money available to working families, the different pieces of a Big Business have acted in such a way to suck that extra-money from the poor families.
The US imports and exports a majority of items which increase the wealth of the country as well as strengthening relationships with other traders. However the US does use their trading methods in unfair ways to maintain their ultimate superpower status. An example of this would be the debt repayments of the World Bank. After WW2 had ended, Europe needed to be rebuilt so the World Bank borrowed the money in order from Europe to be rebuilt. However when Europe agreed to borrowing the money from the World Bank, they also agreed for the US to have access to the European markets, raw material and resources.
Because of the large amounts of profit they were making, they ended up buying more land and equipment on credit. However, when the war ended, the economy was disastrous once again, with farmers having to default onto this credit as a result of a lower amount of profit they were making. To fix these economic problems, Harding implemented a number of economic policies. The Secretary of the Treasury, Andrew Mellon, passed the Fordney-McCumber Tariff Act was passed, which allowed Harding to raise any tariff by 50%. The act also emplaced the Tariff of 1922.
Congress must agree on a plan, which could take years, and then the market must be weaned slowly from dependence on the companies and the financial backing they provide. The reasons by now are well understood. Fannie and Freddie, created to increase the availability of mortgage loans, misused the government's support to enrich shareholders and executives by backing millions of shoddy loans. Taxpayers so far have spent more than $135 billion on the cleanup. The much more divisive question is whether the government should preserve the benefits that the companies provide to middle-class borrowers, including lower interest rates, lenient terms and the ability to get a mortgage even when banks are not making other kinds of loans.
2) The Chesapeake was immensely hospitable to tobacco cultivation. The enormous production of tobacco depressed prices, but colonial Chesapeake tobacco growers responded to falling prices by planting still more acres of tobacco and bringing still more product to market. This caused the need for more labor, which was satisfied through indentured servants, who voluntarily mortgaged their bodies for several years in exchange for transatlantic passage and eventual freedom dues. 3) Slavery existed through indentured
In addition the interest on the debt alone was £9 million per year. All of this made it clear to Pitt that something had to happen to try to escape from the mess the government was in. In the 18th century there was a serious problem with people smuggling goods such as tea and tobacco into the country. This was to avoid the duty tax on products, which gave them a huge profit margin. This profit margin made the risk worth taking for many, resulting in the government losing money due to be not paying duty tax.
To begin with, raising the tax will bring in more money to the government from since demand is inelastic for cigarettes and people will keep on buying them. The extra amount of income could be used to help the well being of the country and to provide more public goods. Also, cigarettes are a demerit good, a good which is considered unhealthy or damaging in some and can be physically harmful to the consumer and other surrounding, so when price increases, demand will fall. Even if it is a small fall in demand, it is most likely to be for the young smokers to demand since they have less income than adults. If more young smokers quit, the healthier the next generations will be since smoking is a main reason behind a lot of health issues including lung
However, many workers find that does not happen. Yes, I will admit that they offer better wages than many people in agricultural areas will make, along with that are additional loans to what has often been described as the company store. The Robber Barons often worked with government to make sure that those who
Wal-Mart does not care about the American economy because they are thriving the way the economy is now, so American citizens have to stand up for their communities. According to the book, How Walmart is destroying America and what you can do about it, when you are a huge rich company and all you want to do is get huger and richer, it turns out a lot of smaller, poorer people have to get hurt in the process. Wal-Mart with all its size and power, could hurt people or help them in a lot of situations. Which do you think it normally chooses to do (Bill Quinn 102)? The answer for so many years has obviously been hurt people.
Slavery, while not a huge issue at the time, was introduced because of the labor tobacco-growing required. Each region settled by the English colonists found great ways of profit: in the New England colonies was shipbuilding and fishing, the Middle Atlantic Colonies' main profits came from both land and sea, and the Southern Colonies' profit was mainly dependent on agriculture. America was not so dependent on Europe and did trade foodstuffs and other desirable goods with the Europeans, but continued to trade and be ruled by the British government. Unfortunately, America's desire to profit and grow became limited due to